Lead Update's

Metals prices managed to grab some gains on Tuesday even as Dollar limited the upside. The strength in Dollar for second consecutive session last night ensured that the prices were not moving rapidly. After the issue of Greece debts seemed to be sorted out, problems relating to high budget deficits in US and demand growth in China emerged.
Even on Wednesday, London forwards were seen trading with marginal losses as Dollar was at 1.293 against the Euro, up 11 pips on 28 Nov 2012. Dollar index settled at 80.36 against the basket of six major currencies, as against 80.18 on 26 November 2012. Indian Rupee moved away from 56 on Tuesday. This is the first decline seen in INR in last five days. The Rupee was trading at 55.45 against the Dollar, down 25 pips.
In US, home price index recovered more than expected in September. This was the sixth consecutive month of gain in home price index. The S&P Case Shiller index rose at an annualized rate of 3.0% in September from a year earlier, above expectations for a 2.9% increase. On a monthly basis, home process increased by 0.4%.
The U.S. Census Bureau said that core durable goods orders, excluding volatile transportation items, rose by a seasonally adjusted 1.5% in October, as against expectations of a 0.5% decline.
In France, consumer confidence remained unchanged in October. The consumer confidence was unchanged at 84 in October. The expectations were of a fall towards 83. In Germany, import price index jumped to a seasonally adjusted 0.6% in quarter ending September from -0.7% in the preceding quarter.
LME Copper are down by $ 27 per tonne at $ 7778 per tonne. A brief weakness in metals that was seen in Asian trades was eradicated soon after LME opening. Copper inventories declined by 275 tonnes to 249550 tonnes in London Metal Exchange on Tuesday. Meanwhile, MCX Copper February expiry contract settled at Rs 438 per kg, down 0.22%.
LME Aluminium was down by $ 11 per tonne at $ 2004 per tonne. The three month forward prices settled at $ 2015 per tonne. Meanwhile, Japan buyers were selling discounts from suppliers on account of lower demand. The dispute between China and Japan on East China Sea has resulted in lower sales of Japanese cars in Chinese markets and this is affecting demand of Aluminium.

Lead Update

Profit booking has chipped in metals soon after the Greece debt deal was finalized that will pave way for 44 billion financial aid to the country. On Tuesday, metals looked as they were just waiting for the deal to happen and generation of profits clipped the industrial metals from the highs of the day. Greece's government debt is now targeted to fall to 124% of GDP by 2020, and to substantially less than 110% of GDP by 2022.
Monday markets remained quite fruitful for the non ferrous metals. News of Greece bailout appreciated the metals. The LME three month forwards closed at $ 7789 per tonne, up $ 96 per tonne. The red metal was down by $ 10 per tonne in early Asian trades trading at $ 7779. MCX Copper ended at day's highs. The far month contract for February expiry ended at Rs 439 per kg, up 0.57%.
The Commodity Futures Trading Commission (CFTC) managed money funds remained betting on weakness in Comex Copper futures for coming days as per Commitment of Traders report for the week ended 20 November 2012.
Managed Money Managers sold 1031 bullish bets on Copper while adding another 790 short positions, or bets on lower prices. This took their net positions up 219 percent to 2652 short contracts from 831 long contracts a week earlier.
Aluminium inventories remained at all time high in Shanghai and LME. Shanghai inventories of Aluminium were up by 6673 tonnes to 460649 tonnes. Shanghai Aluminium inventories have gained by 110% to 465679 tonnes in 2012. On LME, inventories are at 5177100 tonnes on Monday. LME Aluminium was trading at $ 1992 per tonne on Tuesday, unchanged from last night. MCX Aluminium closed at Rs 110.9 per kg, up 1.2%.
In Zinc, one has seen the similar situation. London Metal Exchange (LME) has seen a sharp rise in Zinc inflows. In LME, Zinc inventories are at all time highs but due to lower demand and financing deals they are getting dumped in warehouses. LME warehousing stocks of Zinc stand at 1199050 tonnes in November, up 46 percent from 820300 tonnes in January 2012 this year.
In Shanghai, Zinc stocks have declined but that indicates that they are either getting into unreported storage locations or they are routed into LME warehouses. Zinc stockpiles have declined by 15 percent this year to 310558 tonnes.

Lead Update's

Lower demand in automotive Original Equipment (OE) segment due to slowdown in Indian Automobile Industry remains a vibrant problem for Lead in days to come. This metal has a potential to gain on account of Indian demand but hurdles of higher interest rates and rising petroleum product prices is slowing down consumption.
The inflation numbers in the country are still ruling high and that has forced the Reserve Bank of India to stay away from declining interest rates steadily. One sector that was aiding the lead demand was industrial battery segment. UPS batteries continued to grow robustly this year but the onset of winters is expected to derail this demand as well. The remaining quarter might have to handle subdued demand as UPS and Invertor sales decline in winters.
On MCX, benchmark Lead for December expiry is at Rs 122 per kg. Since testing a low at Rs 108.6 per kg on 26 October, prices are up by 13%. LME lead is trading at $ 2194 per tonne, up 9% since the start of this year. Demand from North America and rising Chinese automobile sales is pushing the prices higher in international markets.